Thousands of Chinese small businesses have come to a sudden stop as former U.S. President Donald Trump’s 145% tariffs on Chinese goods remain in effect. At the Canton Fair in Guangzhou, many manufacturers report halted production and warehouses full of unsold items once bound for American shelves. For firms like Sorbo Technology and Guangdong Sailing Trade Company, this trade war is more than politics—it’s survival.
Factories Stalled, Goods Unsold
Lionel Xu, owner of Sorbo Technology in Zhejiang province, stands before stacks of unsold mosquito repellent kits. “Trump is a crazy man,” Xu says, frustrated by the current tariffs. Once a top seller at Walmart, his products are now sitting idle in storage.
With about half of his company’s output intended for the U.S., Xu fears for the future. “What if Trump doesn’t change his mind? That will be dangerous for our factory,” he says. Sorbo employs around 400 workers—each one affected by this standoff.
Nearby, Amy from Guangdong Sailing Trade Company echoes similar concerns. “We have stopped production already,” she says, pointing to unsold ice cream makers now filling her warehouse.
Understanding Trump’s Tariffs
Tariffs are taxes placed on imports. Trump argues these levies protect American jobs and industries by discouraging dependence on Chinese goods. However, the 145% tariff rate on Chinese exports and China’s 125% response on American imports have created more harm than good for many businesses.
The U.S.-China trade war has left many businesses, especially smaller exporters, scrambling to find new buyers.
The Canton Fair: A Silent Exhibition
The Canton Fair, one of China’s largest trade expos, once bustled with U.S. buyers. Today, many booths are quiet. Products like vacuum cleaners, waffle makers, and juicers sit untouched.
For U.S. importers, the added tariff makes Chinese goods too expensive. Many simply cannot pass these new costs on to American customers.
Over 30,000 businesses attend this annual event hoping to land deals. But this year, it’s mostly uncertainty. The absence of U.S. buyers is noticeable—and concerning.
Searching for New Markets
Despite the slowdown, some Chinese companies are looking ahead. “We hope to open the European market,” says Amy. “Maybe Saudi Arabia and Russia too.”
Others, like Mei Kunyan, are shifting focus to China’s domestic market. Mei sells shoes locally and earns about 10,000 yuan a month. “The Americans are too tricky,” he says, frustrated with the ongoing trade tension.
Domestic Demand Isn’t Enough
China has a large population—1.4 billion people—and officials are urging citizens to spend more to support growth. However, consumer confidence is low. Home values have dropped in recent years, and many people are saving rather than spending.
Although China is pushing internal consumption, its economy is still heavily export-driven. Exports made up nearly half of China’s growth last year. And with Goldman Sachs estimating up to 20 million Chinese workers connected to U.S.-bound exports, the impact of this trade freeze is massive.
Workers Feel the Pinch
Outside the fair, in Guangzhou’s maze of workshops, the reality is clear. Many laborers in factories producing clothes, shoes, and bags are seeing their wages fall.
“We’ve had problems since the pandemic,” one worker says. “Now this trade war. I used to make 300-400 yuan a day. Now I’m lucky to get 100.” Most now earn just enough to survive.
U.S. Pain Mirrors China’s
The trade war’s consequences aren’t just felt in China. Economists warn that American households could soon feel the pinch as well. Products like kitchen appliances, electronics, and toys—all once sourced cheaply from China—are now more expensive.
With the U.S. importing over $400 billion worth of Chinese goods annually, higher costs are expected to reach consumers across the country.
A Standoff With No End in Sight
While Trump has paused some tariffs, those aimed at China remain. Beijing has kept its retaliatory rate at 125%, offering no signs of retreat. Talks between Washington and Beijing are minimal, and both sides are standing firm.
Still, China has opted not to escalate further, possibly hinting at a chance for future negotiations.
What’s Next?
As the world watches, businesses on both sides of the Pacific wait for clarity. For many small exporters, like Xu and Amy, survival now depends on either Trump changing course—or the global market stepping in to fill the U.S. void.
